How to file taxes for minors

Teenagers these days have several unique job opportunities that can help them get into the workforce and most importantly, give them great exposure. Most gigs these days fetch these minors handsome money.

If the child is under the age of 18, who is referred to as a minor, has an income over the taxable slab, then the responsibility lies on the parent or the guardian to file taxes. The reason is that there is no age bar for filing tax returns.

When it comes to filing the tax, a minor can also file, if their earning amount is over Rs 1,500 monthly.

The salary can be made or not, it doesn’t make any difference. Through this article, you will get to know in what situation a parent can claim the income tax return of their child.

A minor can file two kinds of income that can be named as earned money and unearned money as well.

When a child makes money through competitions, TV shows, or sports tournaments, or even from part-time jobs or any business, then that could be called an earned money.

Unearned Money is when the minor child does not obtain money from any kind of employment or talent. It is an income in the form of a gift from any event from their well-wishers like their relatives, grandparents, family friends.

At a point, merging the parent’s income with their child’s will only be applicable once the latter has not reached its majority.

Here, the term ‘clubbing the money’ is considered as the process where collecting the income of the parents along with their children. As per the Income Tax Act, if a child has earned from their respective business or any part-time job, then the obtained amount can be merged with earning the number of their guardians. But if- both mother and father- are salaried then in that situation, the earned amount of of the child can be merged with whom earning is more in their parents.

Now the questions arises- Do I have to file Income Tax Return for my child in case I claim for her/him?

There are two scenarios here -

A child who is earning has to file their own income tax should have their age under 18. However, as long as the child is the responsibility of the parent, then their certain guardian can also file on behalf of the child. Let’s understand this if your child is still not counted under the majority and receives an income above Rs 1,500 monthly. On account of this, you have to pay taxes on behalf of them. Although, it has few circumstances where if the child falls under minority, then the parent wouldn’t claim the child’s income tax returns (ITR).

Important points to know prior to a minor filing their own Income Tax return

Terms like yearly income, pension fund, taxable income, medical insurance, and more similar to that can be taught to minors prior to filing their own tax returns. Children under the age of 18 of should have their own tax return forms.

Children should secure a xerox of their expenditure and incomes during each financial year in order to reference and for the aim to secure.

While putting the return form, it is important to write accurately the taxpayer’s name along with the tax identification number.